Law

Disability insurance policies have changed significantly since they were introduced in the 1930s and are undergoing another major change away from the noncancellable plans of the 1970s. Insurers found that liability well exceeded premiums on policies where disability was defined as not being able to perform the initial occupation and with no time limitations on receiving benefits. Insured surgeons would receive full compensation even if they were still able to be doctors. Current policies vary and so conditions should be carefully read to determine the best policy.

Congress considered legislation eliminating estate taxes in 1997. This issue received attention because, although the number of estates having to pay taxes decreased between 1977 and 1997, the average estate size has become approximately 15 times greater. Much of the general public appears uninterested in legislation that eases the tax burden of the richest citizens, and the insurance industry and estate planners have considerable concerns about the effects of such legislation.